Sun Oct 16th, 2005 at 11:30:01 PM EST
one word of warning. I am not an economist or do I know much about Geman newspapers, but I thought this little note I am about to discuss, fits quite well into the discussion we are having here.
Background in German
In the moment there is an expected take over bid for the Berliner Zeitung through, Mecom by David Montgomery and 3i with Veronis, Suhler, Stevenson.
In reaction to that the editors published a statement, basically saying, Please don't sell us to the vulture capitalists, since you seem to need to sell us, please sell us to another publisher.
Their key reason: Publicistic ambitions, that are equal to the economic interests. ... it is not their aim to maximise the rate of return for the owners, they want to become the first true, unified newspaper in Germany. Something they think, they will not be able to realise with an investor that expects a 20% return, and has ambitions to "simplify" the Germany Newspaper market.
The attitude of the editor is not really surprising, but it is interesting, that he makes this clear distinction. He of course states, that it still is a sound economic business.
Returns are not its highest interest but its distribution...